We bring together a team of tenured, senior specialists that continually review your long-term goals and needs, from tax-planning and investing to sophisticated wealth-transfer strategies. Whatever your stage in life, our team of experts can help devise the right strategy to help you reach your goals.
Estate settlement
Choosing an executor is one of the most important steps you’ll take during the estate settlement process.
Estate settlement requires a broad range of skills and carries a long list of responsibilities, from preparing and filing tax returns to avoiding and resolving conflicts among beneficiaries. It also carries significant legal obligations and requires a commitment of time and energy—with most large estates requiring at least three years to complete settlement.
Our professionals deliver concrete benefits to your estate, such as potential income and estate tax savings, minimizing expenses, helping to achieve more favorable outcomes on sale transactions and mitigating conflict among beneficiaries.
Your estate settlement team handles everything from start to finish
Your estate team includes estate settlement officers and administrative professionals who take full responsibility for the settlement process and related legal liabilities from the beginning through completion. Other specialists, such as tax professionals and trust counsel, will assist your team as needed throughout the process.
1. Understanding your estate
- Gather information; review the will, trust document and any probate court filings
- Research benefits available to the surviving spouse
2. Safeguarding your assets
- Locate, secure and value assets and property
- Obtain professional appraisals for artwork, jewelry, real estate and other assets
- Review and maintain insurance as needed
- Coordinate the sale of belongings and other property
3. Overseeing investments
- Determine liquidity needs and recommend the sale of assets to meet expenses
- Manage remaining assets for future beneficiaries
- Take responsibility for investments, and oversee other managers
4. Paying expenses, maintaining records
- Pay expenses, estate debts and administration expenses
- Maintain accurate, up-to-date records of all estate transactions
- Defend the estate from unfounded or unsubstantiated creditor claims
5. Distributing assets to beneficiaries
- Oversee the preparation of final accounting of estate activity for beneficiaries
- Distribute assets according to the estate plan
6. Collaborating on the preparation and filing of tax returns
- Identify opportunities to minimize tax liabilities
- File final income and gift tax returns and make any payments due
- Pay estate taxes due (federal and state), as well as generation-skipping transfer taxes and oversee the preparation and filing of all related tax returns
- Ensure timely filing of annual estate and trust income tax returns for any income earned during the administration period
- Collaborate with other advisors to resolve any state or federal tax audits
Expertise in real estate, art collections and unusual assets
Our longstanding relationships with auction houses, real estate experts and other specialists enable us to manage the valuation of special assets and the details of all transactions.
Additional resources and expertise
Estate settlement services FAQs
1. What is estate settlement?
Estate settlement is the process of administering a person's estate after death and distributing assets according to the individual's estate documents and applicable law. The process can include identifying and valuing assets, paying expenses and liabilities, filing required tax returns, managing property and investments, and ultimately distributing assets to beneficiaries.
The complexity and length of estate settlement depend on factors such as the size and types of assets in the estate, tax considerations, the number and circumstances of beneficiaries and whether disputes arise.
2. What does an executor do when settling an estate?
An executor is responsible for administering an estate and carrying out the instructions in the deceased person's will, subject to applicable law and court requirements. Responsibilities may include identifying and safeguarding assets, obtaining valuations, paying expenses and debts, coordinating tax filings, maintaining records and distributing assets to beneficiaries.
Serving as executor can involve substantial administrative responsibilities as well as legal and fiduciary obligations. Complex estates may also require the executor to coordinate with attorneys, accountants, investment professionals and other specialists throughout the settlement process.
3. Should I choose a family member or professional executor?
Choosing between a family member and a professional executor depends on the complexity of the estate, the skills and availability of the individual being considered and the family's circumstances. A family member may have valuable knowledge of your wishes and beneficiaries, but estate settlement can require significant time, financial expertise and difficult decisions.
A professional executor can provide experience, administrative resources and independence, which may be particularly valuable for large or complex estates, estates with unusual assets or situations involving potentially conflicting interests among beneficiaries.
4. How long does it typically take to settle an estate?
The time required to settle an estate can vary significantly depending on its size and complexity, the types of assets involved, tax filing requirements, the probate process and whether disputes arise among beneficiaries. A relatively straightforward estate may be settled within several months, while a large or complex estate can take a year or longer.
Estates involving trusts, business interests, real estate in multiple states, hard-to-value assets or estate tax filings may take additional time. Working with experienced estate settlement professionals can help coordinate the many legal, tax, investment and administrative responsibilities involved and keep the process moving forward.
5. What makes settling a high-net-worth estate more complex?
High-net-worth estates often include a wider range of assets and more complicated tax, legal and family considerations. An estate may include multiple investment accounts, trusts, business interests, real estate in several states, alternative investments, concentrated stock positions or valuable personal property. Identifying, valuing and ultimately distributing these assets can require specialized expertise.
Larger estates may also face federal or state estate taxes, complex income tax filings and decisions about when or how assets should be sold or distributed. When multiple trusts, beneficiaries or generations are involved, the executor may also need to balance different interests while carrying out the terms of the estate plan.
Because each type of trust has different legal, tax and financial implications, the right structure should be considered as part of your broader estate and wealth plan. Fiduciary Trust International can help determine which type of trusts best support your objectives.
6. Can an executor be personally liable for mistakes?
Yes. An executor has a fiduciary responsibility to administer the estate according to the terms of the trust documents, will and applicable law. Depending on the circumstances, an executor could potentially be held personally liable for certain errors or breaches of fiduciary duty, such as improperly distributing assets, failing to pay required taxes or creditor claims, mismanaging estate assets or failing to act in the beneficiaries’ best interests. Serving as executor can therefore involve significant responsibility, particularly with a large or complex estate.
7. Can I get professional help if I’ve been named executor of an estate?
Yes. An executor does not have to handle every aspect of estate settlement alone. Depending on the estate and applicable law, an executor may hire an agent to coordinate estate attorneys, tax professionals, investment advisors, appraisers and other specialists to help carry out the estate’s legal, tax, investment and administrative responsibilities. For a large or complex estate, professional support can be particularly valuable in identifying and valuing assets, managing investments and property, addressing tax filings and liabilities, maintaining records and ultimately distributing assets to beneficiaries. Fiduciary Trust International’s experienced estate settlement team can work alongside you to help navigate these responsibilities.
